Magellan Health
Market Cap
US$1.8b
Last Updated
2020/02/16 23:55 UTC
Data Sources
Company Financials +
Executive Summary
Magellan Health, Inc. provides healthcare management services in the United States.
Rewards
Risk Analysis
Snowflake Analysis
Fair value with moderate growth potential.
Similar Companies
Share Price & News
How has Magellan Health's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: MGLN has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-0.5%
MGLN
3.7%
US Healthcare
1.5%
US Market
1 Year Return
12.3%
MGLN
10.0%
US Healthcare
20.1%
US Market
Return vs Industry: MGLN exceeded the US Healthcare industry which returned 10% over the past year.
Return vs Market: MGLN underperformed the US Market which returned 20.1% over the past year.
Shareholder returns
| MGLN | Industry | Market | |
|---|---|---|---|
| 7 Day | -0.5% | 3.7% | 1.5% |
| 30 Day | -6.4% | 0.9% | 1.4% |
| 90 Day | 0.5% | 8.1% | 8.7% |
| 1 Year | 12.3%12.3% | 11.5%10.0% | 22.7%20.1% |
| 3 Year | -7.2%-7.2% | 53.3%46.4% | 50.1%40.5% |
| 5 Year | 17.8%17.8% | 62.8%51.6% | 73.1%54.1% |
Price Volatility Vs. Market
How volatile is Magellan Health's share price compared to the market and industry in the last 5 years?
Simply Wall St News
2 weeks ago | Simply Wall St
Should You Be Concerned About Magellan Health, Inc.'s (NASDAQ:MGLN) ROE?1 month ago | Simply Wall St
Are Magellan Health's (NASDAQ:MGLN) Statutory Earnings A Good Guide To Its Underlying Profitability?1 month ago | Simply Wall St
Why We’re Not Keen On Magellan Health, Inc.’s (NASDAQ:MGLN) 1.9% Return On CapitalValuation
Is Magellan Health undervalued compared to its fair value and its price relative to the market?
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: MGLN ($72.79) is trading below our estimate of fair value ($292.02)
Significantly Below Fair Value: MGLN is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: MGLN is poor value based on its PE Ratio (238.9x) compared to the Healthcare industry average (29.1x).
PE vs Market: MGLN is poor value based on its PE Ratio (238.9x) compared to the US market (18.4x).
Price to Earnings Growth Ratio
PEG Ratio: MGLN is poor value based on its PEG Ratio (5.8x)
Price to Book Ratio
PB vs Industry: MGLN is good value based on its PB Ratio (1.3x) compared to the US Healthcare industry average (3.1x).
Next Steps
Future Growth
How is Magellan Health forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?
41.2%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: MGLN's forecast earnings growth (41.2% per year) is above the savings rate (1.7%).
Earnings vs Market: MGLN's earnings (41.2% per year) are forecast to grow faster than the US market (14.5% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: MGLN's revenue (4.3% per year) is forecast to grow slower than the US market (7.6% per year).
High Growth Revenue: MGLN's revenue (4.3% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: Insufficient data to determine if MGLN's Return on Equity is forecast to be high in 3 years time
Next Steps
Past Performance
How has Magellan Health performed over the past 5 years?
-4.2%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: MGLN has high quality earnings.
Growing Profit Margin: MGLN's current net profit margins (0.1%) are lower than last year (1.5%).
Past Earnings Growth Analysis
Earnings Trend: MGLN's earnings have declined by -4.2% per year over the past 5 years.
Accelerating Growth: MGLN's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: MGLN had negative earnings growth (-93.1%) over the past year, making it difficult to compare to the Healthcare industry average (14%).
Return on Equity
High ROE: MGLN's Return on Equity (0.5%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Magellan Health's financial position?
Financial Position Analysis
Short Term Liabilities: MGLN's short term assets ($1.7B) exceed its short term liabilities ($978.4M).
Long Term Liabilities: MGLN's short term assets ($1.7B) exceed its long term liabilities ($800.8M).
Debt to Equity History and Analysis
Debt Level: MGLN's debt to equity ratio (50.2%) is considered high.
Reducing Debt: MGLN's debt to equity ratio has increased from 21.7% to 50.2% over the past 5 years.
Debt Coverage: MGLN's debt is well covered by operating cash flow (40.3%).
Interest Coverage: MGLN's interest payments on its debt are not well covered by EBIT (2.3x coverage).
Balance Sheet
Inventory Level: MGLN has a low level of unsold assets or inventory.
Debt Coverage by Assets: MGLN's debt is covered by short term assets (assets are 2.4x debt).
Next Steps
Dividend
What is Magellan Health's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: Unable to evaluate MGLN's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.
High Dividend: Unable to evaluate MGLN's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if MGLN's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if MGLN's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of MGLN's dividend in 3 years as they are not forecast to pay a notable one for the US market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
4.3yrs
Average management tenure
CEO
Mostafa Kamal (38yo)
4.6yrs
Tenure
US$2,096,085
Compensation
Mr. Mostafa M. Kamal has been the Chief Executive Officer of Magellan Rx Management at Magellan Health, Inc., since July 01, 2015. Mr. Kamal is responsible for all of Magellan's pharmacy business lines, in ...
CEO Compensation Analysis
Compensation vs Market: Mostafa's total compensation ($USD2.10M) is below average for companies of similar size in the US market ($USD3.76M).
Compensation vs Earnings: Mostafa's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chief Financial Officer | 11.4yrs | US$2.49m | 0.13% $2.3m | |
| Chief Human Resources Officer | 16.1yrs | US$1.37m | 0.066% $1.2m | |
| Senior VP & Special Counsel | 0.08yrs | US$1.64m | 0.072% $1.3m | |
| Chief Executive Officer of Magellan Rx Management | 4.6yrs | US$2.10m | 0.011% $203.2k | |
| President & COO | 0.2yrs | no data | no data | |
| SVP - Corporate Finance | 0yrs | no data | no data | |
| Senior Vice President of Corporate Finance | 0yrs | no data | no data | |
| Chief Technology Officer | 4.1yrs | no data | no data | |
| General Counsel & Secretary | 0yrs | no data | no data | |
| Chief External Affairs Officer | 0yrs | no data | no data |
4.3yrs
Average Tenure
54yo
Average Age
Experienced Management: MGLN's management team is considered experienced (4.3 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 0.6yrs | US$68.69k | 0.10% $1.8m | |
| Lead Director | 4.6yrs | US$270.05k | 0.16% $2.8m | |
| Independent Director | 0.9yrs | no data | 0.021% $368.5k | |
| Independent Director | 16.1yrs | US$275.05k | 0.16% $2.8m | |
| Independent Director | 5.8yrs | US$243.80k | 0.043% $761.1k | |
| Independent Director | 1.8yrs | US$226.71k | 0.016% $286.6k | |
| Independent Director | 0.9yrs | no data | 0.011% $202.9k | |
| Independent Director | 3.3yrs | US$256.30k | 0.031% $559.3k | |
| Independent Director | 0.9yrs | no data | 0.011% $202.9k |
1.8yrs
Average Tenure
55yo
Average Age
Experienced Board: MGLN's board of directors are not considered experienced ( 1.8 years average tenure), which suggests a new board.
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Magellan Health, Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Magellan Health, Inc.
- Ticker: MGLN
- Exchange: NasdaqGS
- Founded: 1969
- Industry: Managed Health Care
- Sector: Healthcare
- Market Cap: US$1.781b
- Shares outstanding: 24.47m
- Website: https://www.magellanhealth.com
Number of Employees
Location
- Magellan Health, Inc.
- 4801 East Washington Street
- Phoenix
- Arizona
- 85034
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| MGLN | NasdaqGS (Nasdaq Global Select) | Yes | Ordinary Common Stock | US | USD | Jul 1992 |
| MAH1 | DB (Deutsche Boerse AG) | Yes | Ordinary Common Stock | DE | EUR | Jul 1992 |
Biography
Magellan Health, Inc. provides healthcare management services in the United States. The company operates in Healthcare and Pharmacy Management segments. The Healthcare segment offers carve-out management services for behavioral health; employee assistance plans (EAP); and other areas of specialty healthcare, including diagnostic imaging, musculoskeletal management, cardiac, and physical medicine. It also contracts with state Medicaid agencies, and the centers for Medicare and Medicaid services to manage care for beneficiaries under Medicaid and Medicare programs, such as healthcare and long-term support services through its network of medical and behavioral health professionals, clinics, hospitals, nursing facilities, home care agencies, and ancillary service providers. The Pharmacy Management segment comprises products and solutions that provide clinical and financial management of pharmaceuticals paid under medical and pharmacy benefit programs. It offers pharmacy benefit management services, such as pharmaceutical dispensing services; pharmacy benefit administration for state Medicaid and other government sponsored programs; clinical and formulary management programs; medical pharmacy management programs; and programs for the integrated management of specialty drugs that treat complex conditions. The company provides services to health plans and other managed care organizations, employers, labor unions, various military and governmental agencies, and third party administrators. Magellan Health, Inc. was founded in 1969 and is based in Phoenix, Arizona.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/16 23:55 |
| End of Day Share Price | 2020/02/14 00:00 |
| Earnings | 2019/09/30 |
| Annual Earnings | 2018/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.